Indian Government to Encourage Production of Hybrid Vehicles


A Hybrid car is a vehicle that moves by consuming two or more distinct power sources, and the most common type in this vehicles are hybrid electric vehicles which combine an internal combustion engine and one or more electric motors. Hybrid car batteries are of two types, one is nickel metal hydride, and the other is lithium ion, these are more environmental friendly compared to lead based batteries. Power sources for hybrid vehicles are electricity, coal or wood, compressed air, liquid nitrogen, hydrogen, solar power, wind, etc. Many other costly raw materials are also used in the manufacturing of these cars.

The Indian Government proposed to set up a National Mission for Hybrid and Electric Vehicles to encourage the auto makers to increase the manufacturing of hybrid vehicles. The 2011-12 budget also decreased the tax on these vehicles from ten percent to five percent. The finance minister announced withdrawing fully the basic customs duty and special CVD on import of specified parts of such vehicles. The petrol based vehicles can be converted in to hybrid vehicles through the fitment of a kit. Many companies invested huge amounts on developing these hybrid vehicles across the world.

Government had announced a Rs.95 Cr incentive package for the electric vehicle makers in November 2010.

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